Amazon buys Eero as a key to smart home market – Axios

Amazon Purchase of Hardware Startup Eero is not difficult to explain: The company's smart home ambitions rely on fast and reliable Wi-Fi throughout the home, and Eero's mesh routers help deliver it.

Why is it important: ] Amazon puts all pieces together for a comprehensive smart home system, with Alexa voice presiding over constellations of Echo speakers, Blink home security systems and Ring smart doorbells.

ICYMI: Amazon spent about $ 1 billion last year to acquire Ring.

The home provider himself could prove a useful integration point for Alexa or other services.

Our thought bubble: This is not just a strategic step for Amazon, it's good time for Eero to give up trying to do it alone in the increasingly competitive network hardware market.

The company had hoped to move to subscription services, such as security, but it was always a tough way to make money for ac ompany, which started off with a major hardware problem.

The Big Picture : Although this agreement alone will not increase significant antitrust study, it is another example of Amazon expanding its reach to new areas. [19659006] Some Eero customers expressed dissatisfaction that the details of their home network setups previously underway on a small startup could be used for wider purposes by Amazon.

The company said in a tweet that "it does not track customers' internet activity, and this policy will not change upon the acquisition."

History Lesson : Amazon has previously invested in Eero-rival Luma, even though its Alexa Fund.

What they say:

Quartz Mike Murphy : " My parents' house has @geteero, @ring and @amazonecho in it. They have a Prime account and shop for Whole Foods for occasional occasions. Jeff Bezos is controlling the suburbs now. "

The Verge's Dieter Bohn :" I'm glad Eero gets more resources, but I is loved by having at least one important gadget in my life, not made by Apple / Google / Amazon / Microsoft or trapped in their ecosystems. "

Bottom line : Whatever Amazon paid (and that doesn't say) It profits not only by selling Eero's network equipment, but also by giving customers